In a significant change to India’s labour framework, the government implemented all four Labour Codes on Friday. It replaces 29 existing laws, which officials call the biggest reform in the sector since Independence. The Codes on Wages, Industrial Relations, Social Security, and Occupational Safety and Health take effect today.
4 New Labour Codes announced, replace 29 old laws
This move consolidates decades-old labour rules, which were spread across several laws, into one framework. Many of these older laws date back to before Independence and the early post-Independence period. They were widely seen as outdated for an economy that has rapidly formalized and adapted to new types of work.
The government stated that the new framework aims to make it easier for employers to comply with regulations and extend social security and workplace protections to more of India’s workforce. This includes gig and platform workers, contract staff, fixed-term employees, and workers in MSMEs, plantations, mines, textiles, IT, and audio-visual production.
Employees eligible for gratuity after one year
Under the new Labour Codes system, fixed-term employees will be eligible for gratuity after one year. Social security coverage will expand to MSMEs, and gig workers will receive formal recognition for the first time. Several sectors will now have mandatory annual health check-ups, clearer safety standards, and guarantees for timely wage payments.
The Codes also allow women to work night shifts across sectors, provided there is consent and safety measures in place. The framework introduces several changes to improve workplace protections and simplify compliance. A single-registration and single-return system will replace the need for multiple filings.
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